The 'Doctrine of Necessity'
Last month, we explained that a bankruptcy court lacks "either the statutory or equitable power to authorize" the debtor's payment of pre-bankruptcy nonpriority unsecured claims, as noted in <i>Capital Factors, Inc. v. Kmart Corp. (In re Kmart Corp.)</i> We explained that the clear, no-nonsense opinions of the district court and the Court of Appeals reversed four bankruptcy court orders, and we explained why the Seventh Circuit's <i>Kmart</i> decision is noteworthy. We went on to discuss the "Doctrine of Necessity" (the Doctrine), a current justification used by some bankrtupcy courts to permit the post-petition payment of certain assertedly "essential" pre-petition claims in Chapter 11 reoganized cases. This month, we discuss Principal Judicial Precedents, Decisions Favorable to the Doctrine, Cases Rejecting the Doctrine, and The Rebirth of the "Doctrine of Necessity."
In the Spotlight: Addressing the Dilemma of Tenant Parking
Dedicated parking spaces appurtenant to office leases, especially covered spaces, are a prized commodity, particularly in suburban markets where virtually all of a tenant's employees drive to work. A tenant may be able to negotiate an arrangement where it receives more parking passes than the actual number of cars it is permitted to park at the premises at any given time under the theory that not all employees with a parking pass will actually show up for work on any given day. The problem presented by this approach is, of course, the one day when every driver with a parking pass shows up for work and there is no room for all of their cars.
The Leasing Hotline
Highlights of the latest commercial leasing cases from around the country.
Issues Requiring Attention in Lien Waiver, Access Clause
The first part of this article described the contents of the lien waiver and access agreement provision required by asset-based lenders. The conclusion discusses the major issues to be covered in the provision.
Avoid Oversights in Lease Amendments
The following scenario frequently occurs: A multi-tenant office building landlord requests its counsel to take a quick look at a proposed two-paragraph lease amendment that the landlord drafted itself. The landlord explains that the tenant has agreed to extend the lease term and establish a new base rental rate for the extended term. Very simple and straightforward, correct? In reality, if the landlord and tenant had signed the two-paragraph lease amendment, they would have made some potentially costly errors, overlooked several issues and bypassed an opportunity to capture more comprehensive provisions that, at a minimum, should have been considered for inclusion. This article will help attorneys avoid some common oversights when working on lease amendments and identify some opportunities that should be assessed during the amendment-drafting phase.
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Identify Percentage Rent Issues that May Impact the Assignment and Subleasing of Retail Space
Shopping center leases often contain percentage rent clauses that provide for the ability of the landlord to share in the sales of a tenant over a specific sales threshold while providing the tenant with a lower total rent when sales do not meet the sales threshold. A typical percentage rent provision obligates the tenant to pay a percentage (<i>ie,</i> the percentage rent rate) of the amount of gross sales generated by and from the tenant's business operated at the leased premises, that exceed the threshold amount, <i>ie,</i> a "sales" base or "breakpoint," as additional rent.
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MedBytes
For those attorneys who loved "Gilly's" in law school, Current Medical Diagnosis and Treatment (CMDT), by Lange, McGraw-Hill, will simplify your ability to understand medicine. The following is a review of the CMDT by regular contributor Elliott B. Oppenheim, MD/JD/LLM Health Law.
Can Med-Mal Caps Be Bypassed?
As more and more states across the nation impose statutory caps on damages for non-economic injuries in medical malpractice cases, plaintiffs and their attorneys are seeing their options for compensation diminished. Attorneys are looking for ways to best help their injured clients, such as hurriedly filing claims before the imposition date of statutory caps and framing their cases as something other than medical malpractice.
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Liability Widens for Fetal Death Caused by Doctors
Overturning a 19-year-old precedent, the Court of Appeals of New York held on April 1 that a woman may recover damages for emotional distress for medical malpractice that causes a miscarriage or stillbirth, even if she personally suffers no physical injury.
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Verdicts
Recent rulings of importance to you and your practice.
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